If the foreign debacle itself affects our USA so much, it does not show any fault in capitalism. It shows the fault of our worldliness and lack of attention to physical realities (e.g., eventually, we get what we produce).
Preserving a broken system merely to avoid the pain necessary to fix it only makes the situation worse. Propping up sectors that should be contracting prevents resources from flowing to other sectors that should be expanding. Keeping workers employed in nonproductive jobs prevents them from gaining productive employment elsewhere. Encouraging activity or behavior the market would otherwise punish discourages alternatives that it would otherwise reward. Unfortunately, leaders on both sides of the Atlantic put politics above economics.